Today I Bought My First Bitcoins
Today I bought my first bitcoins. I sent, with all the confidence that characterizes me, a transfer of 1,000 euros to Kraken, and then waited for the money to appear on the platform before converting it. At that time, I was mainly comparing the times, fees, and usability with other services like Paymium. But what really interested me went beyond the platform: the idea of an alternative currency, capable of circulating without completely depending on traditional banks.
For those who don't yet know the principle, Bitcoin is a digital currency that works on a peer-to-peer network, without a central bank responsible for validating transactions. Some participants secure the network through mining, while others can simply buy, hold, or use bitcoins as a means of payment. The basic idea is simple: to propose a currency that can circulate without completely depending on banks or a state.
Over time, I understood that cryptocurrencies do not eliminate trust. They shift it. We no longer necessarily trust a bank, but a platform, software, a protocol, or its own ability to secure access.
I had a very concrete example with FTX. More than 3,000 euros disappeared from me overnight. As long as users thought they could recover their money, the platform held on. When that trust disappeared and everyone wanted to withdraw their funds, the system collapsed. Fraud and the lack of reserves were at the heart of the problem, but the panic mechanism was nothing new.
More fear than harm in my case: I finally recovered my money a few years later.
Something similar can happen in traditional finance. A bank does not keep all deposits in a safe. If all its clients want to withdraw their money at the same time, it may lack liquidity. The difference is that regulated banks have additional protections, such as deposit guarantees, prudential rules, and the possible intervention of central banks.
At the end of it, whether it is euros, bitcoins, or a balance displayed on a platform, a currency works because we collectively agree to give it value and because we think we can still exchange it tomorrow. Technology can displace intermediaries and change the rules, but it does not eliminate trust.
My first bitcoins were an experiment, but also a way for me to prove that there are other ways to manage my money than to entirely depend on the trust granted to a bank or a state.
To whom do we decide to give our trust?